Nursing homes and assisted living facilities have become increasingly focused on their bottom line in recent years to the detriment of their elderly patients. A recent piece by the New York Times describes the trend where nursing homes have transitioned from non-profits to corporate behemoths – focused on outsourcing and consolidating to minimize costs, reduce their tax liability, and reduce their liability in lawsuits.
According to the nursing homes, consolidation provides a cost-effective way to deliver care to their elderly residents. Through a complex web of corporate ownership, nursing home businesses can reduce their tax liability. According to these nursing homes, those savings are passed on to the residents.
There are also legal benefits to the owners of these nursing home chains – often coming at the expense of the elderly residents. Whenever a person is injured in a nursing home, a complex web of corporate ownership may help the nursing home avoid liability for the harm it has caused. By siphoning the profits of a nursing home into unrelated corporations, injured victims of elder abuse may not be able to hold their nursing home responsible for their damages. Continue reading